Auditing MCQs
Auditing MCQs cover audits, controls, standards, planning, procedures, risks, and reporting—ideal for ACCA, CA, ICMA, B.Com, MBA, and finance exams, ensuring conceptual clarity and practical application for academic and professional success.
Q: Audit plan outlines the
A) Scope and timing
B) Expected frauds
C) Budget for audit
D) Format of reporting
✅ Correct Answer: A
Explanation: An audit plan defines scope, approach, and timing to ensure efficient audit performance.
Q: Correct sequence in audit involves
A) Planning → Execution → Reporting
B) Reporting → Approval → Execution
C) Vouching → Filing → Reporting
D) Audit report → Vouching → Planning
✅ Correct Answer: A
Explanation: A standard audit follows a structured path from planning to execution and final reporting.
Q: Audit risk is the risk that auditor
A) Is not paid
B) Does not perform
C) Issues incorrect opinion
D) Completes early
✅ Correct Answer: C
Explanation: Audit risk involves giving an inappropriate opinion when the financial statements are materially misstated.
Q: Analytical procedures are applied to
A) Identify unusual trends
B) Reduce audit hours
C) Increase revenue
D) Approve vouchers
✅ Correct Answer: A
Explanation: These procedures help auditors identify anomalies and inconsistencies.
Q: Standard audit opinion is issued after
A) Detailed inspection
B) Client request
C) Internal meeting
D) Completion of procedures
✅ Correct Answer: D
Explanation: Opinion is formed after all necessary audit work is concluded.